Bank insider helped DMK man change Rs 11.5 cr into Rs 200 notes

The money was seized from the place of a DMK functionary called Poonjolai Srinivasan.

As per the EC notification, Dayanidhi admitted to I-T authorities about facilitating the exchange of currency for Poonjolai Srinivasan, a DMK functionary.

A senior manager at Canara Bank, Vellore, who is reportedly related to DMK treasurer, S Duraimurugan, had exchanged Rs 11.48 crore in higher denomination notes for Rs 200 notes without authorisation, an internal inquiry has found. It was the seizure of these notes by officials of the Election Commission of India and I-T department that led to the countermanding of the Vellore election in which Duraimurugan’s son D K Kathir Anand is the DMK candidate.

Duraimurugan termed the rescinding of the poll as “murder of democracy”, but sources in the I-T department and Canara Bank said another relative of the DMK leader was their informer. The money was seized from the place of a DMK functionary called Poonjolai Srinivasan.

“It was a case of an enthusiastic relative who is a senior official with Canara Bank, Vellore, extending a helping hand, and another disgruntled relative leaking the information to the authorities,” said a source in the I-T department. A gazette notification issued by the Union ministry for law and justice on behalf of the EC corroborates that the seized cash was issued by the Canara Bank’s cash chest in Vellore. It explains the modus operandi of the process.

A response sought from the managers of the cash chest — Singaram and Vinod Krishnan — revealed that it was done at the behest of M Dayanidhi, senior manager at Canara Bank regional office, Vellore. They raised internal Brand Advise Requisition (popularly known as BAR in banking parlance) and exchanged higher denomination notes for Rs 200 denomination notes, the notification said. “Dayanidhi is a relative of Duraimurugan. He has now been placed under suspension pending departmental enquiry. While there was no misappropriation of funds, the physical replacement of cash in the chest, which technically belongs to the RBI, was unauthorised and illegal,” said a source in Canara Bank. An official mail sent by TOI to Canara Bank’s public relations department remained unanswered, and attempts to reach out to the bank’s general manager in Chennai failed to elicit any official response.

As per the EC notification, Dayanidhi admitted to I-T authorities about facilitating the exchange of currency for Poonjolai Srinivasan, a DMK functionary. He stated that cash was exchanged in 3-4 instalments in March, 2019 and the stated purpose was to meet incidental party expenses and to distribute to people brought for party meetings. Under Dayanidhi’s instructions, the cash chest managers had raised the BAR — indicating cash movements to and from two Canara Bank branches — Ranipet and Shakthi Peedam Extension Counter at Tirumalaikkodi at Lakshmi Narayani Golden Temple near Vellore, another source said.

“However, no cash moved out to those branches or came in from those branches to the chest. Instead, the opportunity was utilised by Dayanidhi to physically replace Rs 200 denomination note bundles in the chest with high denomination notes brought by Srinivasan. An examination of CCTV footage at the bank showed physical transfer of cash by official for non-banking purpose. However, outsiders were not found venturing into the chest. Fearing getting caught in CCTV footage, they should have waited outside to receive bundles,” the source said.